Set up oversight committee to address cedi black-market gap – Prof Bokpin
Economics Professor Godfred Bokpin has urged the government to establish an oversight committee and adopt measures to narrow the gap between the Ghana cedi’s official exchange rate and the black-market rate, warning that exporters are paying the price for the distortions.
Speaking on TV3’s Key Points programme on Saturday, [September 13, 2025] he said the persistent divergence between the two markets had become a source of instability for businesses and was undermining confidence in the economy.
“What we need now is an oversight committee that will track interventions in the foreign exchange market and bring transparency to how the cedi is being managed,” Prof. Bokpin said.
“Such a body, properly constituted, will also help restore confidence and protect exporters who are losing competitiveness because of these gaps.”
He proposed that the committee should include representatives of government, the Bank of Ghana (BoG), exporters, importers and independent economists.
He stressed that the gap could not be closed overnight but required a phased approach: enforcing existing laws, tightening oversight and keeping policy signals consistent.
“Without these, the black market will continue to thrive,” he cautioned.
Prof. Bokpin explained that exporters are particularly exposed to the swings in the currency’s value.
“When the cedi appreciates sharply and then depreciates within a short period, companies cannot plan. Exporters, in particular, are exposed because they earn in foreign currency but spend in cedis, and the sudden swings erode their margins,” he said.
He added that the issue is not only technical but affects jobs and economic growth.
“This is about protecting exporters, safeguarding jobs, and creating the predictability that businesses need to survive,” he emphasised.
The Foreign Exchange Act, 2006 (Act 723) empowers the Bank of Ghana to license forex bureaux and dealers and makes it an offence to trade in foreign currency without authorisation.
The Act also prohibits pricing or advertising goods and services in foreign currency unless approved by the central bank. Penalties include fines or up to 18 months’ imprisonment.
In a notice issued on August 27, 2025, the BoG reminded the public that buying or selling foreign exchange outside licensed channels, or quoting prices in dollars or other foreign currencies, is illegal under Act 723. A similar directive in June 2022 warned businesses that breaching these rules attracts sanctions.
Prof. Bokpin argued that weak enforcement of these provisions, together with unclear policy signals, has encouraged speculative trading and deepened the gap between the official and parallel markets.
According to the Bank of Ghana’s July 2025 Monetary Policy Committee statement, foreign-exchange liquidity “remained tight on account of delayed cocoa inflows and increased import demand,” which contributed to pressure on the cedi. The central bank said it was monitoring the situation and would continue to take steps to improve the availability of foreign currency through the formal banking system.
Prof. Bokpin said addressing these pressures requires a combination of strict application of the law, credible oversight of market interventions, and steady communication of exchange-rate policy.
“Exchange rate stability must be treated as a national priority. If we fail to act decisively, we risk more capital flight, weaker reserves, and an economy that cannot support its private sector,” he warned.